The Supply Curve for a Productive Resource Wherein Price Provides

question 21

Multiple Choice

The supply curve for a productive resource wherein price provides an incentive function is

• A) vertical.
• B) horizontal.
• C) upward sloping to the right.
• D) downward sloping to the right.

---

Definitions:

Standard Price

The predetermined cost of acquiring goods and services, often used in budgeting and cost control.

Direct Materials

Raw materials that can be directly traced to the production of a specific product, a component of the total manufacturing cost.

Variances

Differences between planned or expected financial outcomes and the actual results.

Standard Direct Materials

The budgeted cost for direct materials which are the raw materials that can be directly attributed to the production of goods, used for budgeting and performance evaluation.